Profit divide widens among securities firms in Q1

Profit divide widens among securities firms in Q1

The securities industry posted a stark split in the first quarter of 2026, with bank-backed brokerages delivering strong profit growth while smaller firms struggled with losses amid rising competition and risky proprietary bets.

According to statistics compiled from the 40 largest securities companies, their total profit in Q1 reached approximately $300 million, up about 21 per cent on-year from the same period in 2025. Gains were concentrated among firms backed by major banks.

Among the leaders, Hanoi-headquartered SSI Securities Corporation posted a consolidated revenue of $131.8 million and pre-tax profit of $63.7 million for Q1.

As of March 31, the parent company recorded total assets of $3.68 billion and equity of $1.54 billion, up 24 per cent compared to the end of 2025.

During the quarter, SSI completed a capital increase of $249.1 million through the issuance of more than 415 million shares to existing shareholders.

Following closely, Techcom Securities JSC (TCBS) posted revenue of $448.7 million, up 47 per cent compared to 2024 and exceeding its plan by 20 per cent. Its pre-tax profit reached $284.4 million, surging 48 per cent and fulfilling 123 per cent of its target, reflecting growth in both scale and quality.

The company’s operational efficiency remained strong, with return on equity at 16.7 per cent, return on assets at 8.4 per cent, and a cost-to-income ratio of 13.7 per cent, the lowest in the industry.

According to Nguyen Thi Thu Hien, CEO of TCBS, the firm’s financial foundation has been significantly strengthened, with total assets reaching $3.23 billion – up 51 per cent, and equity hitting $1.76 billion – up 68 per cent.

TCBS continues to maintain a leading position across its core businesses, including top market share in corporate bond issuance advisory, leading margin lending balance, and a top-three ranking in equity brokerage market share on the Ho Chi Minh City stock exchange.

Meanwhile, VPBank Securities JSC (VPBankS) recorded Q1’s pre-tax profit of around $20.6 million, down nearly 58 per cent from the peak $48.6 million in Q4, 2025. However, the figure still rose nearly 50 per cent compared to the same period in 2025, mainly driven by margin lending and proprietary trading.

In a report to shareholders, the Board of Directors of VPBankS noted that 2025 was a volatile year marked by both opportunities and challenges. Despite this, the firm remained committed to its strategic direction and adjusted its business plan to a more ambitious level.

By the end of 2025, the company’s total assets exceeded $2.92 billion. VPBankS has, for the first time, entered the top 10 companies with the highest brokerage market share across all three exchanges, accounting for 3.21 per cent on HSX; and ranked second in investment banking revenue in 2025.

On the loss-making side, EVS Securities posted the largest loss at approximately $7.9 million, compared to a profit of $0.72 million in the same period last year. This marks the company’s deepest loss in the securities sector to date.

EVS attributed the sharp loss to a significant decline in gains from financial assets at fair value through profit or loss, while income from lending, receivables, and brokerage activities was halved.

Similarly, Viet Dragon Securities (VDSC) and Asean Securities each recorded losses of about $1.24 million in Q1 of 2026, compared to profits of $0.88 million and $1.12 million, respectively, in Q1 2025.

T-Cap Securities witnessed a loss of $0.8 million, reversing a profit of $1.32 million a year earlier.

A raft of companies continued to post recurring losses. Along with this, Apec Securities recorded a loss of $1.52 million, extending its loss streak from the same period last year.

Artex Securities reported a loss of $0.72 million, compared to a loss of $0.16 million a year earlier.

Other small and mid-sized firms, including Kien Thiet Securities, Sacombank Securities, VIX Securities, and BIS Securities, also remained in the red during the first quarter.

The Q1, 2026 earnings landscape highlights that loss-making firms are largely smaller players facing increasingly intense competition.

Although the market experienced strong gains during parts of the first quarter, some companies heavily invested in proprietary trading, resulting in underperforming portfolios. The need to make provisions for declines in financial asset values further contributed to losses.

Financial experts noted that a lack of diversification or excessive concentration in high-risk stocks makes portfolios more vulnerable, leading to significant losses. As a result, the profit gap between large and small firms has widened considerably. This trend is expected to persist through the end of 2026.

According to the Ministry of Finance, the stock market in early 2026 showed improved liquidity. As of March 31, the VN-Index stood at 1,674.49 points, down 10.9 per cent from the previous month and 6.2 per cent lower than at the end of 2025.

In terms of scale, total market capitalisation across the HSX, HNX, and UPCoM exchanges reached approximately $387.3 billion, down 2.9 per cent from the end of 2025. This capitalisation is equivalent to about 75.4 per cent of Vietnam’s estimated GDP in 2025.

VIR